Home Daycare Insurance Ontario

Insurance For Home Daycares in Ontario

As any parent knows, there's nothing more precious and important than their children. When parents entrust their most valued asset into their care, they must understand that their little ones will be safe, happy and well-cared for. If you're willing and able to provide that level of care and meet or exceed parents' high expectations, you can run a thriving childcare business from the comfort of your own home. But doing so also exposes you and your home property to the potential for financial loss through property damage or even lawsuits. Your best option is to have proper home daycare insurance coverage.

What is Home Daycare Insurance?

Home daycare insurance is a specific type of coverage that protects you, your property and your daycare business from insured losses. Suppose someone sues you for allegedly causing bodily injury. In that case, you'll be able to get compensation from your insurance provider to cover litigation-related expenses such as attorney fees, court fees, and, if you are found liable, settlement costs up to the coverage limits listed on your policy. Since the coverage limits on your standard home insurance policy are not sufficient to cover liability protection for issues related to your daycare business, it's important also to increase the coverage limits for your personal liability insurance and insurance companies generally increase the daycare liability insurance premiums per child at a rate that is commensurate with the amount of coverage you need or want.

Who Needs Home Daycare Insurance in Ontario?

All childcare providers who care for children in a home daycare setting need liability protection from home daycare insurance. While you likely already have home insurance in place to cover your personal property and belongings as well as give you personal liability coverage if you are sued for causing third-party bodily injury or property damage, it's important to note that activities such as running a home daycare are excluded from coverage on your standard home insurance policy.

If you are an unlicensed home daycare provider, you can simply add a home daycare endorsement to your existing home insurance policy. Ontario daycare owners can simply add an endorsement to their home insurance policy that extends the personal liability insurance on their homeowner's policy to cover their daycare operation. This endorsement removes the exclusion that prevents standard personal liability protection from being applied to business pursuits such as your daycare operation. That means your home daycare activities are no longer excluded from your personal liability coverage when you have an endorsement for home daycare insurance in Ontario.

However, if you are a licensed commercial daycare centre operating outside commercial space, it is recommended that you have a commercial business insurance policy for your home daycare. A commercial business policy may also be needed if you have an unlicensed home daycare that meets certain capacity limits. Speak to your experienced broker at Morison Insurance today to learn more about the ins and outs when you start a home daycare insurance quote. This coverage applies to both full-time and part-time enrollment and before-and-after school programs. 

Do I Need a License to Run a Home Daycare in Ontario?

In Ontario, both licensed and unlicensed home daycare services are legal. Of course, both types of daycares are subject to regulatory requirements that are put in place to keep children safe, but some requirements differ in key ways. Hence, it's important to understand the rules and regulations that govern unlicensed daycares thoroughly. Unlicensed daycare operations take place in a private home setting and are typically run by a parent who wants to be able to bring some income into their household while remaining at home with their own children. A home insurance endorsement is recommended for home daycare insurance in Ontario for these types of childcare operations.

How Does Home Daycare Insurance Change My Home Insurance Policy?

A standard homeowners insurance policy has an exclusion clause in the personal liability protection segment that excludes liability coverage for business pursuits or any business use of the premises. This would naturally mean that your personal liability protection would not apply to any situation related to your home daycare operations.

A home daycare insurance endorsement changes your home policy by removing that personal liability protection exclusion and replacing it with a clause that excludes business pursuits or any business use of the premises except your daycare operation, as you have described it in your declaration. The declaration includes information such as how many children are under your care, their ages, the location of your home daycare, etc. If you have cyber liability insurance coverage as part of your homeowner's insurance policy, it may also be altered slightly to change the definition of a fraud event. When adding an endorsement for home daycare insurance, Ontario policyholders should take the time to ensure they fully understand all changes to their homeowner's policy. The best way to do that is by starting a home daycare insurance quote with your knowledgeable Morison Insurance broker.

How Many Children Can I Care For at My Home Daycare?

According to the childcare rules put in place by the Ontario government, unlicensed childcare providers may care for a maximum of five children under the age of 13 and a maximum of three children under the age of two. It's important to note that this includes the caregiver's own children if their children are younger than four years old. For example, if an unlicensed daycare provider has a one-year-old and an eight-year-old of their own, they could potentially care for two more children under two years old and four more children in total because their eight-year-old, being over the age of four, doesn't count toward the entire total while their one-year-old, being under the age of four, is included in the maximum of five children altogether.

That being said, insurance carriers may have their own specifications about the number of children who can be covered by the insured's personal liability extension for home daycare insurance in Ontario. For example, an insurance company may simply specify that the coverage can not be extended to more than five children in total under the age of 12, including the insured's own children under 12. Because insurance companies may have varying limits for the number of children that are allowable and can be covered, it's important to speak with a qualified broker at Morison Insurance who can ensure you have the right home daycare insurance in place to provide coverage for each and every child in your care.

What Types of Risks Can Impact My Home Daycare Insurance Coverage?

It stands to reason that government regulations require you to keep your home safe and comfortable for the children you are caring for to reduce the possibility of injury or harm. That includes rules that most parents follow anyway, like keeping any item that could harm a child stored out of reach. However, there are some additional factors that your insurance provider may consider when deciding whether they can offer you home daycare insurance and at what cost. Some examples of potential considerations are:

• Is your yard securely fenced?
• Do you have a swimming pool, and if so, is it fenced?
• Do you have pets? How long have you had your pets?
• Are there parts of your home or items in your home that are unsafe for children, and if so, are they secure?

This type of information must be disclosed to your insurance broker so they can find the right home daycare insurance to fit your particular needs.

What is Excluded From Home Daycare Insurance Coverage?

When it comes to a personal liability extension for home daycare insurance, Ontario policyholders should be aware that this coverage does not extend to litigation for issues such as sexual abuse, mental abuse, emotional abuse, molestation, harassment or physical abuse, including corporal punishment. It also does not apply to allegations that the daycare provider failed to take steps to prevent the above from occurring.

Where Can I Get a Home Daycare Insurance Quote in Ontario?

Suppose you're considering running a daycare out of your home and are looking to begin a home daycare insurance quote. In that case, your first step should be to contact the reliable brokers at Morison Insurance to learn more about extending your home insurance personal liability protection with an endorsement for home daycare insurance. Ontario homeowners, call us today at 1-800-463-8074 to learn more.

This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.